23 August 2019

Price-cut trend spreads to Beijing, Guangzhou, paper says

Property developers have been cutting prices in more cities, the latest being Beijing and Guangzhou, China Securities Journal reported Tuesday, citing its own analysis. The trend began in Hangzhou and Nanjing, reflecting overinvestment, oversupply and weak sales, the report said. This could result in tighter funding for developers and exacerbate bad loans, potentially leading to systemic risk. Home prices will remain volatile even if the government refrains from further curbs and a crash of the property market cannot be ruled out in certain parts of the country, the said   

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